As China’s domestic and inbound tourism markets recover, the country’s high-end hotel sector largely returned to pre-pandemic levels by 2024, according to a JLL report.
Notably, popular tourist destinations have outperformed first-tier cities in recovery. Revenue per available room (RevPAR) in Sanya and key tourist markets of western China has significantly surpassed 2019 figures.
The resurgence of business travel, major conferences, exhibitions, and inbound tourism in 2024 has bolstered high-end hotel performance in first-tier cities.
Compared to 2023, RevPAR for high-end hotels in Shanghai and Beijing increased by 4.2% and 2.3%, respectively, outpacing market average and demonstrating strong competitiveness and resilience.
China’s hotel room supply growth peaked in 2019 and has since slowed. Over the next five years, new supply will be concentrated in the upper midscale and above segments, mainly in first-tier and emerging first-tier cities. Chengdu, Chongqing, and Sanya are among the key destinations expected to see faster growth in hotel room availability.
Data from Trip.com shows that hotel bookings by elderly travelers increased by more than 10% in 2024 compared to the previous year. By 2028, China’s senior travel market is projected to reach RMB 2.7 trillion (about USD 372.5 billion).
China's mainland hotel investment market recorded a total transaction volume of RMB 17.87 billion（about USD 2.47 billion) in 2024, maintaining strong investor interest. Nearly 70% of these transactions occurred in first-tier and emerging first-tier cities, with urban hotel assets drawing the most attention.
The market is expected to remain stable in 2025, with projected investment transactions reaching RMB 18 billion（about USD 2.48 billion).
